NuWays AG Recommends Buying DEMIRE AG Despite Challenges

Resulting from recent analyses, NuWays AG has issued a 'Buy' recommendation for DEMIRE AG, acknowledging its stable operational performances despite financial hurdles. DEMIRE's Q3 results showed a notable decline in rental income by 10% year-on-year to €13.6 million, mainly due to asset disposals and a high vacancy level of 17.4%. However, the NOI margin improved to 68.3%, highlighting effective cost management.

The company's FFO recorded €3.4 million, surpassing expectations yet reflecting a 55% year-on-year drop. This decline is attributed to diminished rental revenues and increased interest expenses from bond refinancing. Despite this, DEMIRE maintains a steady outlook for full-year sales and FFO, with management slightly optimistic about easing financial strain in the future.

Management has postponed asset disposals to 2026, as current market offers are unsatisfactory. While facing penalties due to delayed repayments, DEMIRE's shares trade significantly below their NAV of €1.80 per share, presenting an investment opportunity, according to NuWays AG.